18th Kawasaki International Eco-Business Forum

Ajinomoto Group Initiative toAddress Sustainability Challenges
Ajinomoto Co., Inc.
Sustainability Promotion Department Environmental Group
Hiroshi Toyosaki

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Founding Aspirations
In 1909, "Ajinomoto ®" was commercialized from the umami ingredient"glutamic acid" contained in kelp soup stock called dashi.

Ajinomoto ®
(Monosodium Glutamate)
Discoverer of Umami
Kikunae Ikeda(Professor, Teikoku University, Tokyo)

Discovered the flavoring
ingredient called "glutamic acid"contained in kelp soup stock.
He named it Umami

Founding
Aspirations

Contribution to Society
Through Food

Ajinomoto Group Founder2nd generation Saburosuke Suzuki

Launched Ajinomoto ®, theworld's first umami
seasoning based on
glutamic acid.

Desired to improve the nutrition ofJapanese people through umami.
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Development of a Wide Range of Businesses Starting with Amino Acids
Japanese Foods

Overseas Foods

Japanese-style
Dashi no Moto

Umami Seasoning

FrozenFoods

Matched Seasonings

Mayonnaise Fried Chicken Frozen Foods
Powder

SoupCoffee

Soup
Leading-edge BioFine Technologies

Processing and DesignSearching andEvaluation
Manufacturingand Analyses

Life SupportCosmetics

Coffee Drinks
FlavorSeasonings

Functions ofAmino Acids
Flavor Function
PhysiologicalFunction
Nutritional Function
Reactivity

AnimalNutrition

Healthcare

Healthy Food
Base

Amino Acids
Supplements

Manufacturing and Contractingof Development ofPharmaceutical Products

AminoAcids

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Expanding to a Wide Range of Businesses Around the WorldAs of March, 2021
Product Development Area

Business Development
Area

Number of Production
PlantsNumber of Employees

More than 130 Countries andRegions

36 Countries and Regions

120 Plants

33,461 People

Healthcare andOthers

Others¥13.1 Billion¥239.5 Billion

2020 Sales¥1,071.4 trillion

FrozenFoods

Healthcare andOthers¥2.3 Billion¥26.2 billion

2020 BusinessProfit¥113.1 billion
Others▲¥2.2 billion
Frozen Foods¥198.2 trillion

Flavorings andFoods¥620.5 trillion

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Flavorings and Foods¥86.7 trillion

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Philosophy of Sustainability Towards Achieving 2030 Outcomes
VisionSolve food and health problems associated with eating habits and aging withthe use of amino acids, and co-create wellness for people.

Outcomesfor 2030

Reduce environmental impact by 50%

Extend a healthy life of 1 billion people

Reducing the Load on the Global
Environment and Recycling

Areas of Focus
Towards Achieving
Outcomes

Contribute to a Healthier and Richer Life

Food Resource
Sustainability
Conservation of Biodiversity

Climate Change
Response

Delicious and Nutritionally Balanced Diet

Reducing Greenhouse Gas
Emissions

Theme Focusing onAchieving Outcomes

Delicious Salt Reduction

LoadReduction

Plastic Waste Reduction

Protein Intake

Reduce Food Loss

Securing Food
Resources

Sustainable Procurement

Nutritional Improvement inthe Workplace

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Sustainability Challenges in Current Food Systems
Negative Impact on Ecosystems, Agriculture, Livestock and Aquaculture

Derived from Agricultural 10%
Derived from Land Use 25%

Derived From Food
Loss 8%

Greenhouse Gas (GHG)

70% Goes To Food Production

Water

Food Waste
Food Loss

Plastic Waste
41% are Containersand Packaging

1/3 of Production
1.3 Billion Tons
Agriculture, Livestock andFishery Industries

Food Manufacturing Industry

Poverty, Human Rights Issues
Destruction of Forests, Peatlands
Loss of Biodiversity

Food Wholesale

Food Retail

Food SystemsRestaurant Industry

Diet

Food Imbalance

In the future, there will be a shortage of 800 million people are chronically undernourished
2.2 billion people are obese
food, a shortage of nitrogen.
3/4 of the poor are in rural areas
52% of agricultural areas are devastated
80% of deforestation is attributed to agriculture

2050

10 billion people in the world will need twice as much food.

2025-2030

Global Protein Crisis

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Objectives of the 2020-2025 Medium-Term Management PlanIssues

Climate Change
Response

KPI

Scope 1, 2 Total Amounts

2030: 50% Reduction (vs. 2018)

14% Reduction

Scope 3 Raw Units

2030: 24% Reduction (vs. 2018)-Water Usage Amounts

2025: 80% Reduction (vs. 2005)

78% Reduction

Plastic Waste

2030: Zeroing
From Material Receipt toCustomer Delivery-2025: 50% Reduction (vs. 2018)

11% Increase

2050: 50% Reduction (vs. 2018)-Food Loss
Overall Product Lifecycle

Implementation of
Sustainable
Procurement

2020 (Actual)

Greenhouse Gas

Water Risks

Implementation of a
Resource Recycling
Type Society

Objectives

Sustainable Procurement
RatioPaper
Palm Oil
Soy Beans
Coffee Beans, Beef

Destruction of ForestsBiodiversity
Human Rights
Coexistence With Animals

94%
84%
68%
Start Risk Evaluation

2030: 100% Procurement Available

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Ajinomoto Group's CO2 Emissions Reduction Targets
Scope１and 2
50% Reduction by 2030
Total2,027 KT - CO 2

Scope 1
10%
Scope 2
Procured Energy
7%ElectricalPower

Product Transport,Processing, Use,Disposal, and Others
20%

Our
BusinessActivities

Scope 2SteamGas

12 Million Tons

Energy Saving
Scope 1
Fuel Conversion

Heavy OilScope 383%
63% Raw Materials

Renewable
Energy Power
Procurement

CoalCO2 Emissions in 2018
( KT - CO 2 )Scope 3
24% Reduction by 2030
Consideration focusing on raw materials accounting for approximately
80% of Scope 3
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8Ajinomoto Group Plastic Waste Reduction Targets
Plastic Waste Zeroing by 2030
Aiming for zero environmental spills and simple combustion by promoting reduction and material recycling
Fossil Resources

Biomass
Material
Biodegradable
MaterialReduce Usage Amounts, andPrepare for Recycling - Brand
Owner Responsibility

Material Recycling (Cascade)Material Recycling (Horizontal)
Energy Recovery

The use of plastic is strictly
limited to the minimum
application and quantity
required for the safety andquality of the product.

Compost and Biogas

Reuse

All plastics used must be
converted to mono-materials
or other recyclable materials.

PostConsumer
Recycling

Use

Collaboration Across the Value
Chain is Essential for the Social
Implementation of Material
Recycling

Support and contribute toefforts for social
implementation of recovery,sorting, and recycling in eachcountry and region where
Ajinomoto Group products aremanufactured and sold.

Japan is consideringpromoting recycling
through LOMA
activities

Pre-consumer
Recycling
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9Ajinomoto Group Food Loss Reduction Targets and Future Initiatives
2050
2025

50% reduction in food losses over the entire product lifecycle

50% reduction in food loss from receiving raw materials to customer delivery
Logistics and Delivery

Processing andPackaging

Raw Materials(FoodProcurementProduction)

Wholesale and Retail
Delivery

Shipping

Consumer

Sales

Returns
Disposal at the
Manufacturer

Raw Material
Disposal

Disposal in the
Manufacturing Process

Disposal of Inventory
Assets

Disposal of ReturnedProducts

Disposal in Wholesaleand Retail

Disposal by theConsumerReducing Food Losses and Promoting Utilization
Optimization Across the Value Chain
Extraction of Structural Issues in the Manufacturing Process and Countermeasure Planning

Clarifying Ajinomoto Group Scope of Responsibility
Understanding Food Loss Amounts
Formulation of Countermeasures and Effectiveness Measurement
Methods
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10Biocycle (Cyclic Amino Acid Fermentation Production) to Contribute to Sustainable Agriculture

Resource Cycling-type Amino Acid Fermentation Production Methods (Biocycle) to Enrich Regional Agriculture and Sustainably to Procure Crops are
introduced in fermentation plants around the world as one of the ways to achieve stable food resources and contribute to sustainable agriculture.
Contributing to reducing CO2 emissions associatedwith chemical fertilizer manufacturing

Main raw materialSun
Chemical Fertilizer

Covering 70% of the chemical fertilizer (nitrogen)required for 1 million hectares of sugarcane plantations

1 Million Ha
Absorbs CO2 in the atmospherethrough photosynthesis

Reducing Greenhouse
Gases

60 Million Tons

OrganicFertilizer
3 Million Tons

Sugarcane

Sugarcane Field

Sustainable Agricultural

Harvesting

Reduction of Food Loss
Recycling of By-products

Bio-cyclesBy-products
3 MillionTons

CornA mechanism that can be created forever alongwith the region

80 Million Tons

Sugar Refinery

ProductCassava

SugarcaneWater
40 MillionTons

Umami Flavoring “Ajinomoto”

Ammonia
0.1 MillionTons

Crude Sugar
8 Million Tons

Molasses (Sugarcane Juice)
3 Million Tons

1 Million Tons

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Contribution to Sustainable Agriculture: A Case of Thailand's Efforts Towards Renewable Agriculture
Build an ecosystem with about 40 partners that connect fermentation and microbial technology with "aspiration" as theircoreUniversities

Government

PrivateSectorCorporations

Spread of VC support for agriculture

Crop Processing Efficiency

Microbial
Fertilizer

Human Resource
Development in Agriculture

Collaboration with the Administration(Manufacturing and Sales Right for
Agricultural Materials, New Agricultural
Insurance Licenses, and the Like)

Agricultural Development
Through Fermentation
Technology

Direct Agricultural Contribution VC

Supply System for Mosaic
Disease-free Seedlings

Microbial Fertilizer

Pipeline with theJapanese and Thai
Administrations

Effective Utilization of Agricultural
Residual Values

Activity
Popularization

Agricultural Method Training,
Crop Disease Study Groups

Weather Insurance,
Financial Support, Loans

Drone Material Spraying, Image
Analysis, Smart Agriculture

Improved Added Value ofCrops

Improved Crop Productivity
Agricultural Joint Development
Between Universities andResearch Institutes

Agricultural Apps, Databases

Unique Collaboration with Private Companies(70% reduction in pesticides with adjuvants,
linking agriculture and food to a better life)

Green Ammonia from Biomass( Fertilizers and Fuels)
Manufacture (Planned)

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Green Innovation in Ammonia Production and Supply

Existing
production andsupply systems

Contribution to the global environment through the implementation of green ammonia through the use of renewable
resources and the building of local-production and local consumption ammonia production and a supply system, throughbreakthrough new catalysts.
Ammonia Synthesis (HB Method)

Natural Gas

Amino Acids, Agricultural Fertilizers,
Chemical Products, and Others

Transport

HydrogenHigh Temperature, High
Pressure, Large-scale

Fossil Fuel

Transport

Ammonia
Demand Region

Natural Gas and Ammonia Production Region

Decarbonization & Local
Production, Local
Consumption System

From 2017

Wood Chips

Tokyo Institute of Technology Professor Hosono's Groundbreaking New Catalyst
Amino Acids, Agricultural
Amount of CO2 emissions 1/8
Fertilizers, Chemical Products,and Others
HydrogenRenewable Resources

Transport Not
Required
Small-scale and On-site

Ammonia Production Region = Ammonia Demand Region

Application of New
Technologies

Fertilizer
to theWorldFor
Denitrificationof Thermal
Power
Generation,and the Like

Ammonia
Demand Region

2022
Planned
Implementation

As a Hydrogen
Energy Carrier

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